The Nifty extended its upward trajectory notching its sixth straight day of gains, despite an initial dip to 22,099 in the opening session on February 20. However, the index rebounded strongly during the closing hours, hitting a new record high of 22,215.60 and ended up 0.34 percent.
The daily bullish candle and the hourly chart's pattern of higher-highs, higher-lows affirms the robust outlook, with the next rally potentially targeting the 22,300-22,350 range. Conversely, the India VIX rose, closing at 16.07, reflecting some nervousness among traders.
The Bank Nifty climbed 1.20 percent to 47,094.20, maintaining its bullish stance post breaching and holding above the 46,600 resistance, now a pivotal support level. A close beyond 47,200 could spur further upside. Major support came from HDFC Bank's that surged by 2.63 percent.
The Nifty PSU Bank index traded sideways but remains underpinned by strong support at 7,050, potentially supporting the Bank Nifty to lead towards its all-time high of 48,636.45.
Here are three buy calls for the short term:
Tata Communications: Buy | LTP: Rs 1,822 | Stop-Loss: Rs 1,750 | Target: Rs 1,980 | Return: 9 percent
Tata Communications is currently displaying a robust bullish momentum, praised by consistent higher highs and higher lows. A recent breakout above the critical resistance at Rs 1,780 levels supported by substantial trading volumes. This breakthrough indicates the potential continuation of the upward trend.
Moreover, the stock is trading above key moving averages, including the short-term (20-day) and medium-term (50-day) average, further solidifying its bullish stance. The relative strength index (RSI) is at 63 levels. While minor resistance persists near Rs 1,840 levels, a breach could signal a significant shift in the ongoing bullish rally.
Hence, based on the above technical structure, one can initiate a long position at Rs 1,822 for a target price of Rs 1,980. The stop-loss can be kept at Rs 1,750.
Just Dial: Buy | LTP: Rs 900 | Stop-Loss: Rs 845 | Target: Rs 1,000 | Return: 11 percent
Just Dial, positioned at Rs 900, exemplifies a formidable uptrend, recently achieving an all-time high of Rs 949. After a measured retracement to the preceding swing low on diminished volumes, the stock resiliently hangs around Rs 875.
It trades above the 20 EMA (exponential moving average), affirming the persisting bullish trend. The stochastic daily indicator indicates a bullish trend with a positive crossover highlighting the positive sentiment.
Concurrently, the ascending RSI (relative strength index) in the weekly chart not only corroborates strength but also suggests ample room for an extended rally.
Hence, based on the above technical structure, one can initiate a long position at Rs 900, for a target price of Rs 1,000. The stop-loss can be kept at Rs 845.
Aurobindo Pharma: Buy | LTP: Rs 1,052 | Stop-Loss: Rs 1,005 | Target: Rs 1,125 | Return: 7 percent
Aurobindo Pharma exhibits a strong resurgence after a notable consolidation, forming a sturdy base at the 61.8 percent Fibonacci retracement level. The stock is currently trading above the 50 SMA (simple moving average), indicating positive momentum.
The daily chart reveals a Bullish Harami pattern, reinforcing the bullish sentiment. Moreover, the RSI is gradually ascending, suggesting increasing strength.
Hence, based on the above technical structure, one can initiate a long position at Rs 1,052 for a target price of Rs 1,125. The stop-loss can be kept at Rs 1,005.
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